Despite the gains, the Ethereum price remains 45% down on the start of the year.
(Picture: REUTERS)The price of Ethereum has jumped 10% to recover to its highest level in two months after the cryptocurrency announced testing work was under way to make using the coin more efficient.
The move, scheduled for September, will see the digital asset transfer from what’s known as a proof-of-work to a proof-of-stake mechanism, which consumes less energy and is set to make using the coin much cheaper.
The announcement has enthused environmentally conscious investors as pressure grows on the crypto world to bolster its ESG credentials, amid a jump in energy prices that has sent crypto mining costs soaring.
In July, US firm Compass Mining was forced to fire 15% of its workforce and slash executive pay by 50% as part of a package of cost-cutting measures to “recalibrate” because of the “recent market downturn and anticipated future market conditions.”
Global Bitcoin mining, which continues to use an energy-intensive proof-of-work mechanism, consumes more electricity than the entire population of Argentina, racking up an estimated 150 terawatt-hours per years according to estimates from the University of Cambridge.
Last year, Tesla boss Elon Musk announced it would stop accepting Bitcoin as payment after the billionaire said mining the coins consumes too much fossil fuel-generated electricity. Musk has since expressed his support for using Dogecoin.
Despite the gains, the Ethereum price remains 45% down on the start of the year. It has a total market cap of £187 billion, well down from a peak of £450 billion in November 2021.
